PE Roundup February 01
PE/VC headline trends Monthly US$ mn # Investments 6,000 67 6 0 6 6 6 0 7 60,000 0 0,000 9,617 1,90,7 1,07 1,70, 1,796,09,97,67,06 1,99 0-0 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-1 Feb-1,000,000 1,000-000 0 00 00 0 Exits 6 17 1 1 60 0 1, 6,19,0 6,7 01 970 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-1 Feb-1 Fund Raise 6 0 6 77 00 6 1 169 1 67 91 1 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-1 Feb-1 0 0 0 0 6 0 Page
Key Trends Investments PE/VC investments recorded a 60% decline in value in February 01 compared to January 01 (US$1. billion in Feb 01 vs US$. billion in Jan 01), which in absence of a mega deal is on expected lines. January 01 had witnessed a large investment worth US$1.7 billion in HDFC Ltd by a group of investors including GIC, KKR and others. On a yearon-year basis investments grew by 6% (US$9 million in Feb 017). In terms of volume, investments grew by 17% compared to January 01 and were more than twice the number of deals recorded in February 017. In our view, the base line trend of a steady increase in cumulative investment value and size of deals continues. In February 01, there were four deals of value greater than US$0 million, aggregating US$0 million compared to none in February 017. However, unlike the trend seen over the past few months there were no mega deals (value greater than US00 million) in February. The largest investment in February 01 was worth US$170 million, IIFL s purchase of 0% stake in NSDL e-governance Infrastructure from IDBI Bank. This was followed by ASK Group s US$1 million investment in Shriram properties to setup a fund for investing into affordable, mid-housing and distressed assets. In terms of stage of investments, Expansion/Growth investments recorded the highest value of investments in February 01, with deals worth US$70 million. In terms of volume, startup/early stage investing recorded the highest number of deals (0 deals worth US$9 million). There were three buyouts worth US$6 million in February 01. From a sector point of view, financial services, led the activity in February 01, with US$7 million invested across 1 deals followed by Technology, with US$96 million invested across 1 deals.. Page
Key Trends Exits February 01 recorded 1 exits worth US$ million, a sharp decline in both value and volume compared to the previous month as well as February 017. In terms of value, exits declined by over 70% compared to January 01 as well as the same period last year. Likewise, in terms of volume, there was more than 0% decline compared to January 01 and February 017. Our view is that this was primarily on account of the global volatility which triggered a decline in open market deals. There were just four open market exits in February 01, the lowest number of monthly open market exits in over months, accounting for just US$97 million. In comparison, February 017 had recorded 1 exits via open market worth US$ million. The largest exit in February 01 saw Apollo Global selling its investment in Logix Group s projects in Noida back to the promoters for close to US$7 million, marking its first exit from a real estate project since it started investing in the sector on its own in 016. As per media reports, the fund made an internal rate of return (IRR) of around 6%, an attractive rate given the current slowdown in real estate. There was one PE backed IPO in February 01, that of Aster DM Healthcare, which raised close to US$1 million. However, there was no offer for sale by any of the existing PE/VC investors. Fund Raise February 01 witnessed three fund raises worth US$1 million. There were US$ billion worth fund raise plans announced in February 01. The largest announcement of US$ billion fund raise was made by Global Steering Group, a Social Impact Investment Taskforce established by the G, for impact investments into education and other developmental initiatives of the government. Page
Investments Value US$ million Volume Financial services 7 Technology 1 Technology 96 Financial services 1 RHC Ecommerce 9 Ecommerce 171 RHC Industrial Products 11 Industrial Products Others 1 Others 0 Deal Size US$ mn (Volume) Deal Stage US$ mn (Volume) 0 () 719 () 1 () 1 (6) 9 (0) 96 () 76 (0) 117 () () () <$Mn $Mn - $0Mn $0Mn - $0Mn $0Mn - $0Mn >$0Mn Expansion/ Growth Start-up/ Early Stage PIPE Buyout Debt ** Deal value not available on out of 6 deals in Feb 01 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Investments Monthly sector cut Investment by Sector US$mn Feb 171 7 96 179 Jan 17 0 19 11 Dec 69 11 7 0 Nov 1 6 99 1 Oct 1 67 0 00 00 0 000 00 000 00 000 Investment by Sector No. of Deals Feb 9 1 1 1 Jan 6 1 Dec 1 1 11 Nov 9 9 1 Oct 7 1-0 0 0 0 60 70 Ecommerce RHC Financial Services Technology Infrastructure RCP Automotive Power & Utilities Others Healthcare *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 6
Investments Monthly (deal size and type) Deal Size Trend - Value (US$ mn) Deal Type Trend - Value Feb 1 1 0 Feb 70 9 966 Jan 0 0,70 Jan 76,06 6 1 Dec 70 9 1,79 Dec 1,9 7-1 Nov 1 0, Nov 971 79 9 Oct 1 1,6 Oct 1,96 0 Deal Size Trend - No of Deals Deal Type Trend - No of Deals Feb 0 6 Feb 0 Jan Jan 1 Dec 6 9 Dec 1 9 0 Nov 16 7 1 Nov 1 1 9 Oct 7 Oct 1 1 <$Mn $Mn - $0Mn $0Mn - $0Mn $0Mn - $0Mn >$0Mn NA Expansion/ Growth Capital PIPE Financing Debt deal Start-up/ Early Stage Buyout Page 7
Top Investments Top Investments in February 01 Company PE Investor Sector Stage US$mn NSDL e-governance Infrastructure Ltd. IIFL Shriram Properties Pvt. Ltd. ASK Group RHC Religare Enterprises Ltd. Bay Capital Partners and others Technology Expansion/ Growth Capital Expansion/ Growth Capital Stake (%) 170.0 0.0 1. NA Financial Services PIPE Financing 1.0 9.6 Monnet Ispat Aion-JSW s Industrial Products PIPE Financing 11.9. Bundl Technologies Pvt. Ltd. National Stock Exchange of India Ltd. Lendingkart Technologies Pvt. Ltd. Naspers Ventures and others IIFL India Quotient Fund, Saama Capital, Mayfieldand others Ecommerce Startup/Early Stage 0.0 NA Financial Services Yapstone Inc PremjiInvest Financial Services Embassy Golf Links Business Park, Sanjay Ghodawat Group Hiveloop Technology Pvt. Ltd. Expansion/ Growth Capital 0.0 NA Financial Services Startup/Early Stage 7. NA Expansion/ Growth Capital 71.0 NA Xander RHC Buyout.9 0.0 Lightspeed India Partners I LLC, Lightspeed Venture Partners Ecommerce Startup/Early Stage 0.0 NA *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Exits Exits in February 01 Exits by Sector US$mn (Volume) Exits by Type US$mn (Volume) RHC 17 () 97 () Food and agriculture 6 (1) () Financial Services Logistics 1 () 11 (1) () Chemicals (1) RCP (1) Others NA () NA (1) NA (1) IPO Buyback Strategic Secondary Sale Open Market *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 9
Exits Top Exits Top Exits in February 01 Company Sector Sellers Buyer Exit Type US$mn Stake (%) Logix Group RHC Apollo Buyback 7 NA Coffee Day Enterprises Ltd. The Indian Film Combine Pvt. Ltd City Union Bank Ltd. Snowman Logistics Ltd. VVF India Ltd. Food and Agriculture RHC Financial Services Logistics Chemicals KKR Open Market 6. The Xander Group Reliance Industrial Investments and Holdings Ltd. Strategic 0.0 ChrysCapital Open Market 16 0.9 Norwest Venture Partners Reliance Alternative Investments Fund Open Market 11 7.0 Buyback NA Safari Industries India Ltd. RCP Tano Capital Open Market. *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Fund Raise Top Fund Raise/Announcements in February 01 Status Fund US$m Strategy Remark Raised Rajasthan govt. 77 Green Energy Starup Promotion Fund Raised Omnivore Partners 6 Food & Agriculture Second Fund Announced Global Steering Group for Impact Investment Announced IndoSpace Logistics Parks III, L.P 00 Real Estate,000 Education Social Impact Fund Announced Puravankara 0 Real Estate TO develop affordable housing Page 11
Ernst & Young LLP EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. For any queries you can reach out to the undersigned. Vivek Soni Partner M&A & Leader - Private Equity Services T +91 6190 F +91 619 00 E vivek.soni@in.ey.com Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit www.ey.com/in. Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 00 in India, having its registered office at Camac Street, rd Floor, Block C, Kolkata 700016 017 Ernst & Young LLP. Published in India. All Rights Reserved. This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. Page 1